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Financial Feasibility, - Av~ilabiliV of funds, private involvement, ~ancial <br />packaging and cost effectaVeness. <br /> <br /> · Appropriate ratio of prorate ~nds to Ivficro Loan Fands. <br /> <br /> · Sufficient cash flow to cover proposed debt service as <br /> demonstrated by financial statements and projections. <br /> <br />· Business must show a positive net wortla. <br /> <br />Letter of Commitment from applicant pledgnng to complete the <br />project during proposed project duration, if the loan application <br />is approved. <br /> <br />Letter of Commitment from other financing sources stating <br />terms and conditions of their participation in the project if <br />applicable. <br /> <br />· Sufficient collateral. <br /> <br />Ail other information as required in the application and/or additional <br />information as may be requested by the Economic Development <br />Authority. <br /> <br />d. Project compliance with ail city codes and policies. <br /> <br />Program Objectives - In addition to quality job and wage <br />creation/retention requirements, the applicant must meet all Micro Loan <br />Fund criteria and demonstrate how the proposed activities will meet at <br />least one of the following objectives: <br /> <br />The project contributes to the fulfillment of the city's approved <br />and adopted economic development and/or redevelopment <br />plans. <br /> <br />· The project prevents or elLmmates slums and blight. <br /> <br />· The project increases the local tax base. <br /> <br />· The project brings a structure into compliance with an e.-dsting <br /> building code violation. <br /> <br />5. <br /> <br />A xvntren request for an extension shall be accompanied by a copy of current <br />financial statements and a $500 up£ront processing fee. The processing fee is <br />used to cover processing expenses and v~411 be returned if request is denied. The <br />application for an extension beyond the origmaI term should include a letter of <br />denial from a conventional lender. Refinancing will nor be allowed solely for dae <br />put-pose of reducing the interest rate due to lower market interest rates. <br /> <br />Elk River Econormc Development Authority <br />M_iczo Loan Fund Policy & Guideimes <br /> <br />Page 7 of 8 <br /> <br /> <br />